TITLE

REPUTATION AND SUSTAINED SUPERIOR FINANCIAL PERFORMANCE

AUTHOR(S)
Roberts, Peter W.; Dowling, Grahame R.
PUB. DATE
August 2000
SOURCE
Academy of Management Proceedings & Membership Directory;2000, pM1
SOURCE TYPE
Conference Proceeding
DOC. TYPE
Proceeding
ABSTRACT
Research suggests that there may be a positive relationship between the quality of a firms reputation and its financial performance. In this paper, we extend this idea into the field of strategic management by proposing that firms with relatively good reputations are better able to sustain above-average profit outcomes over time. The issue is important within competitive environments, wherein economic forces ensure that, unless otherwise impeded, above-normal returns tend to erode over time. In respect of this, we undertake an analysis of the relationship between corporate reputation and the dynamics of financial performance to substantiate the idea that good reputations are valuable strategic assets that help firms achieve sustained superior profitability. The results (from two complementary dynamic models) consistently support a link between good reputations and persistent profitability.
ACCESSION #
5438572

 

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